What is it about?

Although leadership succession plays a crucial role in the life cycle of family businesses, numerous companies are facing the crisis of declining performance or even bankruptcy due to a lack of succession planning. How to ensure the longevity of enterprises across generations? This article introduces corporate governance mechanism to advance the development of succession planning, thereby eventually promotes better organizational performance.

Featured Image

Why is it important?

Drawing on agency theory, we found that board independence and education are positively related to succession planning, indicating succession planning plays a mediating role in the relationship between corporate governance and firm performance. This paper is the first empirical research that incorporates the topics of strategic management, corporate governance, leadership succession, and organizational performance in the context of family firms. The profound implications of corporate governance on strategic management decision can render thought-provoking insights into how succession planning can be fostered through the governance structures in family firms.

Perspectives

Publishing this article was a great pleasure as it has brought the latest ideas and perspectives in terms of strategic management and corporate governance to worldwide audience. No matter you are students, tutors, employees, managers, or policymakers, we believe that you will definitely benefit from reading this article because it has straightforward structure, plain language, solid theoretical basis, and wide implications. I hope you find this article thought-provoking. Enjoy reading!

Dr Zeyu Li
University Putra Malaysia

Read the Original

This page is a summary of: The influence of corporate governance on succession planning and organizational performance in Chinese family firms, Management Decision, December 2024, Emerald,
DOI: 10.1108/md-02-2024-0412.
You can read the full text:

Read

Contributors

The following have contributed to this page